US President Donald Trump and Chinese leader Xi Jinping discussed long-term cooperation last month, but trade disputes between Washington and Beijing remain largely unaddressed. China's critical minerals export restrictions continue to dominate global supply chains after Washington introduced tariffs last year, shaking US industry. These materials are indispensable for magnets, high-tech hardware, and defence technologies.
Hertha Metals, a Houston-based technology start-up founded by MIT engineer Laureen Meroueh, aims to break China's grip. The company has developed a way to produce high-purity iron needed for magnets used in electric vehicles, humanoid robots, and Apple's AirPod cases. Hertha is breaking ground on a 10,000-tonne-a-year commercial facility on the outskirts of Houston.
The company plans to produce the first steel-grade iron in the fourth quarter of next year and start producing high-purity iron by 2028. Meroueh stated there is a sense of "urgency" after the US-China tariff war. Her processing technology uses natural gas to make high-purity iron from low-grade ore and fines.
The Hertha furnace makes iron or steel from ore in a single step. For magnet-grade iron, there is one additional refining step in a vacuum furnace. In September, the company closed a $133.65mn Series A funding round, including a $65mn equity investment through the Pentagon's Industrial Base Analysis and Sustainment programme.
The round was co-led by Khosla Ventures and Doerr Capital. Ashley Zumwalt-Forbes of the Baker Institute notes it is difficult to compete with China's state-backed monopoly.
Source: Financial Times Companies · Summarized by HeadlinesBriefing